CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1105Introduced by Assembly Member Petrie-NorrisFebruary 15, 2023 An act to amend Section 17039.3 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTAB 1105, as introduced, Petrie-Norris. Personal Income Tax Law: business credit utilization.The Personal Income Tax Law allows various credits against the taxes imposed by that law. Existing law, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, limits the total of all business credits otherwise allowable to $5,000,000, as specified. Existing law defines business credit for these purposes.This bill would require the Franchise Tax Board to track the utilization of business credits for the taxable year beginning on or after January 1, 2023, and before January 1, 2024, and submit a report the Legislature no later than November 1, 2024, reporting the number of taxpayers utilizing business credits, and the total dollar value of credit utilized.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17039.3 of the Revenue and Taxation Code is amended to read:17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) (1) For the taxable year beginning on or after January 1, 2023, and before January 1, 2024, the Franchise Tax Board shall track the utilization of business credits and provide a report to the Legislature no later than November 1, 2024, in compliance with Section 9795 of the Government Code, reporting the number of taxpayers utilizing business credits, and the total dollar value of credit utilized.(2) The disclosure requirements of this subdivision shall be treated as an exception to Section 19542. (i)(j) The amendments made to this section by the act adding this subdivision Section 7 of Chapter 3 of the Statutes of 2022 shall be operative for taxable years beginning on or after January 1, 2022.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1105Introduced by Assembly Member Petrie-NorrisFebruary 15, 2023 An act to amend Section 17039.3 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTAB 1105, as introduced, Petrie-Norris. Personal Income Tax Law: business credit utilization.The Personal Income Tax Law allows various credits against the taxes imposed by that law. Existing law, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, limits the total of all business credits otherwise allowable to $5,000,000, as specified. Existing law defines business credit for these purposes.This bill would require the Franchise Tax Board to track the utilization of business credits for the taxable year beginning on or after January 1, 2023, and before January 1, 2024, and submit a report the Legislature no later than November 1, 2024, reporting the number of taxpayers utilizing business credits, and the total dollar value of credit utilized.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 1105
Introduced by Assembly Member Petrie-NorrisFebruary 15, 2023
Introduced by Assembly Member Petrie-Norris
February 15, 2023
An act to amend Section 17039.3 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1105, as introduced, Petrie-Norris. Personal Income Tax Law: business credit utilization.
The Personal Income Tax Law allows various credits against the taxes imposed by that law. Existing law, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, limits the total of all business credits otherwise allowable to $5,000,000, as specified. Existing law defines business credit for these purposes.This bill would require the Franchise Tax Board to track the utilization of business credits for the taxable year beginning on or after January 1, 2023, and before January 1, 2024, and submit a report the Legislature no later than November 1, 2024, reporting the number of taxpayers utilizing business credits, and the total dollar value of credit utilized.
The Personal Income Tax Law allows various credits against the taxes imposed by that law. Existing law, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, limits the total of all business credits otherwise allowable to $5,000,000, as specified. Existing law defines business credit for these purposes.
This bill would require the Franchise Tax Board to track the utilization of business credits for the taxable year beginning on or after January 1, 2023, and before January 1, 2024, and submit a report the Legislature no later than November 1, 2024, reporting the number of taxpayers utilizing business credits, and the total dollar value of credit utilized.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 17039.3 of the Revenue and Taxation Code is amended to read:17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) (1) For the taxable year beginning on or after January 1, 2023, and before January 1, 2024, the Franchise Tax Board shall track the utilization of business credits and provide a report to the Legislature no later than November 1, 2024, in compliance with Section 9795 of the Government Code, reporting the number of taxpayers utilizing business credits, and the total dollar value of credit utilized.(2) The disclosure requirements of this subdivision shall be treated as an exception to Section 19542. (i)(j) The amendments made to this section by the act adding this subdivision Section 7 of Chapter 3 of the Statutes of 2022 shall be operative for taxable years beginning on or after January 1, 2022.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 17039.3 of the Revenue and Taxation Code is amended to read:17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) (1) For the taxable year beginning on or after January 1, 2023, and before January 1, 2024, the Franchise Tax Board shall track the utilization of business credits and provide a report to the Legislature no later than November 1, 2024, in compliance with Section 9795 of the Government Code, reporting the number of taxpayers utilizing business credits, and the total dollar value of credit utilized.(2) The disclosure requirements of this subdivision shall be treated as an exception to Section 19542. (i)(j) The amendments made to this section by the act adding this subdivision Section 7 of Chapter 3 of the Statutes of 2022 shall be operative for taxable years beginning on or after January 1, 2022.
SECTION 1. Section 17039.3 of the Revenue and Taxation Code is amended to read:
### SECTION 1.
17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) (1) For the taxable year beginning on or after January 1, 2023, and before January 1, 2024, the Franchise Tax Board shall track the utilization of business credits and provide a report to the Legislature no later than November 1, 2024, in compliance with Section 9795 of the Government Code, reporting the number of taxpayers utilizing business credits, and the total dollar value of credit utilized.(2) The disclosure requirements of this subdivision shall be treated as an exception to Section 19542. (i)(j) The amendments made to this section by the act adding this subdivision Section 7 of Chapter 3 of the Statutes of 2022 shall be operative for taxable years beginning on or after January 1, 2022.
17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) (1) For the taxable year beginning on or after January 1, 2023, and before January 1, 2024, the Franchise Tax Board shall track the utilization of business credits and provide a report to the Legislature no later than November 1, 2024, in compliance with Section 9795 of the Government Code, reporting the number of taxpayers utilizing business credits, and the total dollar value of credit utilized.(2) The disclosure requirements of this subdivision shall be treated as an exception to Section 19542. (i)(j) The amendments made to this section by the act adding this subdivision Section 7 of Chapter 3 of the Statutes of 2022 shall be operative for taxable years beginning on or after January 1, 2022.
17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) (1) For the taxable year beginning on or after January 1, 2023, and before January 1, 2024, the Franchise Tax Board shall track the utilization of business credits and provide a report to the Legislature no later than November 1, 2024, in compliance with Section 9795 of the Government Code, reporting the number of taxpayers utilizing business credits, and the total dollar value of credit utilized.(2) The disclosure requirements of this subdivision shall be treated as an exception to Section 19542. (i)(j) The amendments made to this section by the act adding this subdivision Section 7 of Chapter 3 of the Statutes of 2022 shall be operative for taxable years beginning on or after January 1, 2022.
17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).
(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).
(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:
(1) The credit allowed by Section 17052 (relating to credit for earned income).
(2) The credit allowed by Section 17052.1 (relating to credit for young child).
(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).
(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).
(5) The credit allowed by Section 17053.5 (relating to renters tax credit).
(6) The credit allowed by Section 17054 (relating to credit for personal exemption).
(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).
(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).
(9) The credit allowed by Section 17058 (relating to credit for low-income housing).
(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).
(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).
(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.
(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.
(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.
(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.
(i) (1) For the taxable year beginning on or after January 1, 2023, and before January 1, 2024, the Franchise Tax Board shall track the utilization of business credits and provide a report to the Legislature no later than November 1, 2024, in compliance with Section 9795 of the Government Code, reporting the number of taxpayers utilizing business credits, and the total dollar value of credit utilized.
(2) The disclosure requirements of this subdivision shall be treated as an exception to Section 19542.
(i)
(j) The amendments made to this section by the act adding this subdivision Section 7 of Chapter 3 of the Statutes of 2022 shall be operative for taxable years beginning on or after January 1, 2022.